The Competition Commission of India is unlikely to probe quick commerce platforms such as Zepto, Blinkit and Instamart, as the regulator did not form grounds for an investigation, people in the know told NDTV Profit.
Prima facie, no players appear to be dominant in the segment, neither the business model appears to be anti-competitive, they said.
The antitrust regulator is learnt to have reviewed the complaints against the 10-minutes delivery firms and did not find any merit to launch a probe, a source privy to the development said.
The regulator is of view that quick commerce is a relatively new segment and still evolving. Any such probe at a nascent stage may hurt innovation.
CCI typically exercises its power to take up the matter suo moto, but in this case, decided not to, as it does not see the quick commerce space requiring regulatory intervention.
There are multiple players in the segment, and many e-commerce firms are also now entering into the space. So, no such dominance pattern is emerging, one person explained.
Quick commerce is a new platform, promising deliveries of anything—from groceries to electronics—within 10 minutes. Looking at the growing presence and penetration, even e-commerce giants, such as Amazon, are entering into the segment. Flipkart has already launched Flipkart Minutes to compete within the space. While, Big Basket also has a similar business model.
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Last month, the All India Consumer Products Distributors Federation, which represents 4 lakh retail distributors, had written to DPIIT alleging quick commerce firms practising predatory pricing by offering deep discounts to consumers.
The DPIIT, under the commerce ministry, has refereed the complaints to the CCI.
CCI typically act in two ways; one, it takes up probe suo moto, if it finds prima facie evidence against the entity breaching competition laws. Else, when the aggrieved party files a formal complaint with the CCI. In this case, there is no formal complaint filed with the CCI.
The regulator has laid out a proper SOP for filing case with it, which needs to be followed.
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